The Real Estate Institute of Western Australia (REIWA) has come out in support of the McGowan Government plan to remove stamp duty from off-the-plan purchases.
REIWA President Damian Collins said the news was a significant win for property buyers and restored the current imbalance where standalone houses only paid duty on land.
“By reducing the tax for off-the-plan sales, not only will it help the government to meet its target of 47 per cent of new dwellings in infill locations, but will help increase the speed of transition from apartment sales to actual construction activity,” Mr Collins said.
“Removing the stamp duty from the build component of off-the-plan purchases is a great start, however not everyone wants a brand new property and to wait years for it to be built.
“The WA Government needs to look at other ways that they can help more people in owning their own homes.
“In the current real estate climate, we need to help encourage more people to buy. With first home buyers accounting for one third of all sales in Western Australia, they are the oil of the property engine and we should be making it easier for them to get into the market, with the help of all sectors.”
Mr Collins said the REIWA recommended the stamp duty exemption for first home buyers increase from $430,000 to $550,000 to help encourage sales activity in the established market as well as the infill developments.
“Enabling first home buyers to purchase established properties provides the opportunity to live closer to the city and also has major economic flow-on effects to the other sectors as buyers often then spend a significant amount on renovations,” he noted.
“It is also pleasing to see the opposition committing to making a healthy property industry a focus of the next WA election by committing to stamp duty exemption for downsizing seniors and removing foreign owner’s duty surcharge.
“The health of the property market is essential for economic growth of the state and we look forward to working with all sides of government to help WA’s economy to thrive.”